Trump Delays Tariffs After Last-Minute Talks

US President Donald Trump on Monday announced a 30‐day postponement of tariffs set to hit Mexico and Canada, following urgent calls with leaders of both nations over border security and drug smuggling concerns.

In phone discussions held just hours before the tariffs were to take effect, Mexican President Claudia Sheinbaum agreed to send 10,000 troops to bolster security along the US-Mexico border, while Canadian Prime Minister Justin Trudeau committed to measures including deploying nearly 10,000 frontline officers to secure the northern border and intensifying actions against drug trafficking. Trump described his talks as “very friendly,” and said the agreements would immediately pause the planned tariff impositions.

The decision comes amid global market turmoil sparked by Trump’s earlier threat of imposing sweeping 25% tariffs on exports from Canada and Mexico. Major stock indices on Wall Street, as well as markets in London, Paris, and Frankfurt, had slumped following the announcement of potential trade penalties that raised fears of a broader global trade war. While additional tariffs on Chinese imports remain under discussion—with a further 10 percent duty under consideration—the administration also limited tariffs on Canada’s energy imports to 10% in an effort to prevent a spike in fuel prices.

Trudeau, noting the “good call” during their conversation, outlined further steps including designating drug cartels as terrorist organizations, appointing a “Fentanyl Czar,” and enhancing measures against money laundering. However, it remains unclear how these measures will differ from Canada’s existing efforts, as authorities reported having already deployed about 8,500 personnel along the border in December.

In a broader context, the tariff threat has affected the United States’ three largest trading partners—Canada, China, and Mexico—contributing to global economic unease. National Economic Council Director Kevin Hassett emphasized that the move was aimed at countering the influx of drugs, stating, “This is not a trade war, this is a drug war,” even as experts warned that such tariffs could ultimately impact American consumers.

Additional discussions with Beijing are expected within the next 24 hours as the Trump administration seeks to avoid new tariffs on Chinese imports, while political tensions continue to simmer. In a pointed remark on Canada’s role, Trump reiterated his call for the country to “become the 51st state,” a comment made amid growing domestic challenges for Trudeau, who recently announced plans to resign, potentially leading to elections as early as April.

As talks on final deals continue with both nations, the 30-day delay provides temporary relief for global markets while the administration works to secure its border and recalibrate its trade policy.